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Bank of Baroda is a 102 years old State-owned Bank with modern & contemporary personality, offering banking products and services to Large industrial, SME, retail & agricultural customers across the country.

Bank has implemented multiple accounts being linked to a single Debit Card (verified by Visa; CVV2) & has also implemented 3DSecure feature & Back Office for Merchant Mgmt in the Internet Payment Gateway.

Document Mgmt System has been rolled out for Centralised Pension Payment Cell at Baroda.

All Back-Office functions have now been effectively centralised in Bank of Baroda.

Information on production trends in consumer durables, auto sales, realty prices and strong growth in corporate earnings indicate a good pick up in private demand

India’s Fiscal Consolidation Plan is going to benefit from the larger than expected mobilisation from 3G/BWA Spectrum auctions and partial deregulation/upward revision in the prices of petroleum products in June, 2010.

Imports growth of 40.9% (y-o-y) in Apr-May’10 has been in excess of export growth of 35.7%; trade deficit has widened to $21.71 bln from $14.51 bln a year ago; portfolio flows have moderated from $6.5bln in Q1, FY10 to $3.7 bln in Q1, FY11; Rupee has depreciated by 3.5% against the USD in Q1, FY11.

Headline inflation (WPI) has been in double digits since Feb’10 & is getting generalised every successive month – A real threat to inclusive growth.

RBI has continued with the process of normalisation of Monetary Policy despite some pressures on liquidity; short-term interest rates have edged up.

For the period of 27 months, out of the total amount restructured, Rs 2,796.09 crore belonged to wholesale banking, Rs 1,296.52 crore to SMEs, Rs 560.10 crore to retail and Rs 630.70 crore to agriculture sector.

About 39 accounts (of Rs 1 crore & above) restructured on/after 1st Apr, 2008 with aggregate outstanding of Rs 475.77 crore became NPA after restructuring and most of them belonged to the SME segment.

Industry-wise break-up shows that the Bank’s restructured accounts are well spread over different sectors, the major ones being iron & steel,cotton textiles, engineering goods, real estate, food processing and infrastructure.

The Bank has primarily helped genuine borrowers who suffered from temporary cash flow problems due to the global crisis. These accounts are restructured looking into the internal strength & the financial viability of such borrowers.

The IMF has revised upwards its projection of global growth from 4.2% to 4.6% for 2010 on the strength of robust Q1 growth; but warned of many downside risks that may pull down the growth later.

With increasing uncertainty about the pace of global recovery, global energy & commodity prices have softened – a positive for India.

Growth prospects for India have improved since April 2010 on the back of satisfactory performance of monsoon and a strong rebound in non-agricultural activities. Official projections place Indian growth at 8.5% for FY11.

Headline inflation has moved to double digits in Feb’10 and has remained sticky. Demand-side pressures are evident in the inflation series.

Since Feb’10, the RBI has raised CRR by 100 bps, Repo by 100 bps and Reverse Repo by 125 bps & also reduced the LAF corridor by 25 bps to reduce interest rate volatility and control excess demand pressures.

The RBI’s Policy Review (27 July) clearly hints significant doses of tightening in the rest of the FY11, as it aims to bring down inflation to 6.0% by fiscal year-end.

With an expected strong pick-up in credit demand & continued tightening, interest rates in credit market would remain elevated but improved fiscal situation would help lower the pressure on bond yields.

Rupee has developed a “depreciation bias” due to a faster widening of current account deficit and intermittent risk aversion amongst global investors.

The Bank would continue with its thrust on sustainable & qualitative growth --

Would maintain its growth above the industry average to steadily expand the market share.From Jun’09 to Jun’10, the Bank’s market share in Deposits has gone up from 3.68% to 3.98% and in Advances from 3.72% to 3.93%.

The Bank would grow its deposits in the band of 20% to 22.0%; credit in the range of 22.0% to 24.0%, fee-based income in line with the loan-book and overall profitability by 25.0%, factoring in various downside risks stemming from the economic environment.

The Bank is building Strong Foundation for Future Growth by

Recruiting the best possible talent in the country from the Premier Institutions

Working on BPR project in consultation with Mckinsey & Co. so as to achieve the optimum use of technology and right skilling of the manpower to yield maximum customer satisfaction.

Aggressively launching a series of marketing campaigns to promote its Brand value, such as the well-publicised Baroda Next Reinforcement Campaign – II.